India's Central Bureau of Investigation (CBI) has arrested five people suspected of presenting forged letters of credit (L/Cs) worth at least US$500,000.

One of the alleged fraudsters is said to have presented more than 100 forged L/Cs in just one month.

Arrests and accusations

The two main suspected perpetrators of this alleged fraud, Rajesh Charodia, and Sachin Shah, were arrested at the beginning of April.

The CBI's Economic Offences Wing subsequently arrested Suresh Ganpat Dhumal, Jitendra Bhogilal Panchal and Mohammed Ziauddin.

The accused have been charged with breach of trust, forgery and fraud.

Homes searched

Police have raided the residences of all of the accused, and say that they have recovered substantial amounts of cash as well as documents that investigators believe will provide evidence against the alleged conspirators.

According to local media reports, the three men arrested after the main suspects - Dhumal, Bhogilal and Ziauddin - supplied the bogus L/Cs.

Monthly tally

One of the main accused, Charodia, allegedly presented 119 forged L/Cs in March 2011 and presented these to the Bank of India (BOI).

The L/Cs issued by Bank of Baroda appeared to relate to genuine transactions.

Attempted fraud

The BOI honoured the L/Cs, only to realise that they were forged when they were not paid.

The conspirators are also accused of trying to cheat the State Bank of Bikaner and Jaipur in April 2009 by producing bills purportedly related to forged L/Cs and apparently issued by Corporation Bank.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.